A butcher shop knows that it must buy a new machine in 5 years. The machine...

Question

Question

A butcher shop knows that it must buy a new machine in 5 years. The machine costs $15,000. In order to accumulate enough mone

Answer 1

Answer #1

Future value = pmtx ((1+r)^n-1)}/r PMT = FV = ((1+r)^n-1))/r Each payment = PMT = $1,338.88 (15,000/(((1.025410)-1)/0.025)

Answer 2

Similar Homework Help Questions

Ingrid wants to buy a $15,000 car in 5 years. How much money must she deposit...

Ingrid wants to buy a $15,000 car in 5 years. How much money must she deposit at the end of each quarter in an account paying 5.9% compounded quarterly so that she will have enough to pay for her car? How much money must she deposit at the end of each quarter? SI (Round to the nearest cent as needed.)
16. Suppose $15,000 is invested at an annual rate of 5% for 12 years. Find the...

16. Suppose $15,000 is invested at an annual rate of 5% for 12 years. Find the compounded amount interest is compounded as follows. a.) Annually b.) Semiannually c.) Quarterly d.) Monthly 17. Find the present value of each compounded amount: a.) $42000 in 7 years, 6% compounded monthly. b) $17,650 in 4 years, 4% compounded quarterly. c.) S 1347.89 in 3 years, 5.5% compounded semiannually. 18. Find the future value of each annuity. a.) S 1288 deposited at the end...
3. You want to buy a car, and a local bank will lend you $20,000. The...

3. You want to buy a car, and a local bank will lend you $20,000. The loan would be fully amortized over 3 years (36 months), and the nominal interest rate would be 12%, with interest paid monthly. What is the monthly loan payment? Round your answer to the nearest cent. $ What is the loan's EFF%? Round your answer to two decimal places. % 4. Find the present values of the following cash flow streams. The appropriate interest rate...

In the following ordinary annuity, the interest is compounded with each payment, and the payment is...

In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period. Find the required payment for the sinking fund. (Round your answer to the nearest cent.) Monthly deposits earning 4% to accumulate $7000 after 10 years. Just before his first attempt at bungee jumping, John decides to buy a life insurance policy. His annual income at age 30 is $35,000, so he figures he should get enough...
In order to accumulate enough money for a down payment on a house, a couple deposits...

In order to accumulate enough money for a down payment on a house, a couple deposits $624 per month into an account paying 6% compounded monthly. If payments are made at the end of each period, how much money will be in the account in 3 years? What is the amount in the account after 3 years? $ (Round to the nearest cent as needed.)
In the following ordinary annuity, the interest is compounded with each payment, and the payment is...

In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period. Find the required payment for the sinking fund. (Round your answer to the nearest cent.) Monthly deposits earning 4% to accumulate $9000 after 10 years.

del 5629 per month into an account paying In order to accumulate enough money for a...

del 5629 per month into an account paying In order to accumulate enough money for a down payment on a house, a couple deposits $629 per month into an account paying 3% compounded monthly. If payments are made at the end of each period, how much money will be in the account in 6 years? What is the amount in the account after 6 years? in 6 years $07 Round to the nearest cent as needed.)
16. You have just received $185,000 from the estate of a long-lost rich uncle. If you...

16. You have just received $185,000 from the estate of a long-lost rich uncle. If you invest all your inheritance in a tax-free bond fund earning 6.8% compounded quarterly, how long do you have to wait to become a millionaire? (Round your answer to two decimal places.) 20.In the following ordinary annuity, the interest is compounded with each payment, and the payment is made at the end of the compounding period. Find the accumulated amount of the annuity. (Round your...
Ingrid wants to buy a $20,000 car in 7 years. How much money must she deposit...

Ingrid wants to buy a $20,000 car in 7 years. How much money must she deposit at the end of each quarter in an account paying 5.1% compounded quarterly so that she will have enough to pay for her car?

Ingrid wants to buy a $19,000 car in 7 years. How much money must she deposit...

Ingrid wants to buy a $19,000 car in 7 years. How much money must she deposit at the end of each quarter in an account paying 5.6% compounded quarterly so that she will have enough to pay for her car?